World Economic Forum via FlikrBillionaire hedge fund manager Paul Singer, who runs Elliott Management, opened the Sohn Investment Conference and his talk was pretty much a downer.
Singer made the point that quantitative easing has caused a “distorted recovery.”
He explained that this means people who own stocks and bonds — financiers, bankers, hedge funds— are doing fine.
“Most of the people in this room are doing just fine,” Singer said, adding, “The ordinary person is not experiencing the effective equivalent of Dow Jones 15,000….the average person is paying a lot of money…for the necessities of life is worried about his or her job or the job of his or her family…is experiencing an economy that has basically recession level employment.”
This distortion is helping to fuel class warfare, he added.
“I think that’s a poisonous atmosphere in which to rely upon the private sector to generate growth,” he said.
He concluded that he sees no “safe haven” in investing.